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CONSOLIDATED SYLLABUS

IN TAXATION
As of January 19, 2018

TAX 2
A. Transfer Taxes - (Secs. 84 to 104 of the NIRC as amended by RA
10963)

I. Nature of Transfer Taxes

II. Estate Tax

A. Nature of Estate Tax


1. Definition – Sec 104, NIRC – includes real and
personal properties, whether tangible or intangible, or mixed, wherever
situated.
2. Rate of Tax (Sec 84) – 6% of net estate
3. The Law that governs the imposition of Estate Tax –
(Sec. 3, RR 2-2003) – It is a well-settled rule that estate taxation is
governed by the statute in force at the time of death of the decedent. The
estate tax accrues as of the death of the decedent and the accrual of the
tax is distinct from the obligation to pay the same. Upon the death of the
decedent, succession takes place and the right of the State to tax the
privilege to transmit the estate vests instantly upon death.
4. Is Estate Tax a Property Tax or Excise Tax?
Separate Opinion of Justice Bersamin in CIR vs. Pilipinas Shell,
GR No. 188497 dated February 19, 2014

(1) Composition of the Gross Estate


1. Sec 104 NIRC – Definitions
2. Sec 5, RR 2-2003 – Valuation of Gross Estate
3. Who are subject to estate taxes?
a. Filipino citizens and resident aliens – on properties within and
without the Philippines
b. Non-resident aliens – properties which at the time of his death
were situated in the Philippines – (Sec 86 [B] NIRC – net estate of
non-resident decedent, not a citizen of the Philippines)
1) Rule on Reciprocity
2) Rules on Intangible Personal Property
CIR vs. Campos Rueda (42 SCRA 23)
CIR vs. Fisher (1 SCRA 93)

4. Gross Estate (Secs. 85 and 104)


a. Valuation Rules (Sec. 5 of RR No. 2-03)
1. Real Property (Sec 88 NIRC)
2. Personal Property (applicability of RR No. 6-2013)
3. Shares of Stock
4. Usufruct (Sec 88 NIRC)
(A). Decedent’s Interest
(B). Transfer in Contemplation of Death

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(C). Revocable Transfer
(D). Property Passing Under General Power of Appointment -
Correlate with Sec. 87
(E). Proceeds of Life Insurance
(F). Prior Interest
(G) Transfers for Insufficient Consideration
(H).Capital of Surviving Spouse

(2) Deductions Allowed to Estate (Sec. 86 NIRC)


1. Allowed to Residents and Citizens
a. Standard Deduction – P5,000,000
b. Claims against the Estate
- Requisites for deductibility
i. Simple Loan
ii. Unpaid obligation from purchase of goods
iii. Court Settlement
Dizon vs. CTA (GR No. 140944 dated April 30, 2008)
c. Claims against insolvent persons
d. Unpaid Mortgages, Taxes and Casualty Losses
i. Rules
e. Property Previously Taxed (Vanishing Deductions)
i. Requisites for deductibility
ii. Rationale for grant
f. Transfers for Public Use
g. Family Home – P10,000,000
h. Amount Received by Heirs Under Republic Act No. 4917

2. Allowed to Nonresident aliens (See also Sec. 86 D)


a. Limitation (Sec. 7 RR No. 2-03) Correlate with Sec. 86(D) on tax
credits for estate taxes paid to foreign country

B. Exemption of certain acquisitions and


transmissions (Sec 87)

C. Estate Tax Returns and Payment of Tax (Secs.


90 and 91)
1. When required and contents
2. Time of Filing / Extension of time to file
3. Place of Filing
4. Time of Payment / Extension of time to pay
5. CPA Certification

F. Other Matters
1. Who is liable to pay? [Sec. 91 (D)]
Estate of Vda. De Gabriel vs. CIR (GR No. 155541 dated January 27,
2004)
a. Discharge of Executor or Administrator from Personal Liability
(Sec. 92)
b. Liability of Heirs
CIR vs. Pineda (21 SCRA 105)
2. Payment Before Delivery by Executor Sec. 94
Marcos II vs. CA 273 SCRA 47
3. Duties of Certain Officers (Sec. 95)

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4. Restitution of Tax Upon Satisfaction of Outstanding Obligations (Sec.
96)
5. Payment of Tax Antecedent to the Transfer of Shares, Bonds or Rights
(Sec. 97)
PNB vs. Santos, GR No. 208295 dated December 10, 2014

III. Donor’s Tax

A. Nature of Donor’s Tax


Lladoc vs. Vs. CIR ( 14 SCRA 292)
Pirovano vs. CIR (14 SCRA 232)

1. Definition
2. Composition of Gross Gift (Secs. 98 and 104)
3. Tax Rate (Sec. 99[A]) – 6% of total gifts in excess of P250,000 exempt
gift made during the calendar year
4. Contributions to a candidate, political party or coalition of parties for
campaign purposes governed by Election Code (Sec. 99[B])

B. Composition of the Gross Gifts (Sec. 104)


1. Residents and Citizens
2. Non-resident alien
a. Rule on Reciprocity
b. Rules on Intangible Personal Property
3. Corporations
4. Valuation of Gifts made in property (Sec. 102)
5. Exemption of Certain Gifts (Sec. 101[A])
a. Residents and Citizens
b. Non-resident aliens
c. Corporations

C. Other Matters
1. Rule on Political Contributions [Sec. 99B]
Secs. 13 and 14 RA No. 7166
RR No. 7-2011 dated February 16, 2011
RMC 30-2016 dated March 14, 2016
Abello vs. CIR, GR No. 120721 dated February 23, 2005

2. Transfer for Less than adequate and full consideration (Sec. 100)
– where property, other than real property, is transferred for
less than an adequate and full consideration in money or money’s
worth,….deemed a gift subject to donor’s tax; exception: if made
in the ordinary course of trade or business …. will be
considered as made for an adequate and full consideration in
money or money’s worth.
(RR No. 6-2008 on shares of stock as amended by RR 6-2013)
Philamlife vs. SOF, GR No. 210987 dated November 24, 2014
4. Tax Credit for Donor’s Taxes paid to a Foreign Country [Sec. 101
(C)]
5. The Law that governs the imposition of Donor’s Tax
(Sec. 11 RR No. 2-03)
6. Renunciation of share in the conjugal partnership or absolute
community; and, hereditary estate (Sec. 11 RR No. 2-03)
7. Capacity to Buy

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Sps. Evono CTA EB Case No. 705 dated June 4, 2012

D. Filing and Payment of Returns (Sec. 103) / (Sec. 13 RR No. 2-03)


1. Requirements
2. Time and Place of Filing
3. Notice of Donation – Exemption from Donor’s Tax (Sec 13 [C], RR
No. 2-03)

B. Value-Added Tax - (Secs. 105 to 115 of the NIRC as amended by RA


10963)

I. VAT In General
a. Nature and characteristic of VAT in general
Sec. 4.105.-2 of RR No. 16-05
CIR vs. Magsaysay Lines GR No. 146984, July 28, 2006
CIR vs. Seagate Technology (Phils) GR No. 153866 February 11, 2005
b. VAT as an indirect tax
Contex vs. CIR GR No. 151135 dated July 2, 2004
c. Persons Liable (Sec. 105)
(1) Persons liable in general
CIR vs. CA & CMS GR No. 125355, March 30, 2000
(2) Who are required to register for VAT
Sec. 236(G), [Sec. 9.236-1 of RR No. 16-05]
(3) Optional VAT Registration (Sec. 236 H) [Sec. 9.236-1 of RR No. 16-05]
d. Meaning of the phrase “in the course of trade of business” (Sec. 105)
Sec. 4.105-3 of RR No. 16-05
CIR vs. Magsaysay Lines GR No. 146984 dated July 28, 2006
e. Exceptions to the Rule of Regularity
f. Output Tax vs. Input Taxes
(1) Sources of Input Tax (Sec. 110 A)
(2) Excess Output or Input Tax (Sec. 111 B)
(3) Rule on Input Tax on Capital Goods (Sec. 4.110-3 of RR No. 16-05)
(4) Substantiation of Input Tax Credits (Sec. 4.110-8 of RR No. 16-05)

II. Vatable Transactions

1. Vatable Sale on Goods & Services


a. Definition of goods and services (Sec. 106 and Sec. 108)
b. VAT base for goods and services (Sec. 106 and Sec.108)
c. Meaning of gross selling price and gross receipts (Sec. 106 and
Sec.108)
d. Rules on sales of Real Property
(1) Rule on Sales on Instalment [RR No. Sec. 4.106-3 of RR No. 16-05
as amended by Sec. 3 of RR No. 4-07]
(2) Rule on sale of real property use in business (Sec. 14 (l) of RR No.
4-07)
(3) Correlate with Sec. 109 on exempt sales of Real Property
(4) Amendments of Section 109 on Enumerated VAT-exempt
Transactions under Rep. Act No. 10963 (TRAIN) on Threshold of
Real Property exempt from VAT.
e. Transactions deemed sale (Sec. 106 B)
(1) Rationale of Imposition

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(2) Enumeration – Sec. 4.106-7 RR No. 16-05
(3) Tax Base of Transactions Deemed Sale
f. Rules for Certain Services
(1) Common Carriers
Sec. 4.108-2 Nos. 11 and 12 of RR No. 16-05
Sec. 4.108-3 of RR No. 16-05
(2) Lease of Properties
Sec. 4.108-3 of RR No. 16-05
Lease of Residential Units - [Sec. 4.109-1 (B)(q) of RR No. 16-05]
Amendments of Section 109 on Enumerated VAT-exempt
Transactions under Rep. Act No. 10963 (TRAIN) on Threshold of
Lease of Residential Units exempt from VAT.
(3) Professional Services
(4) Medical Services
Sec. 4.109-1 (B)(g) of RR No. 16-05
Philippine Healthcare Providers vs. CIR GR No. 168129 April 24,
2007

2. VAT on Importations
a. VAT Imposition on Importation (Sec. 107)
a. Exempt Importations under Sec. 109
b. Transfer of Goods by Tax-exempt Persons (Sec. 107 B)
c. Amendments of Section 109 on Enumerated VAT-exempt
Transactions under Rep. Act No. 10963 (TRAIN)

III. Zero-rated Sales & VAT-exempt Transactions


a. Nature of Zero Rated Sales
b. Zero Rated Sale of Goods (Sec. 106)
c. Zero Rated Sale of Services (Sec. 108 B)
CIR vs. American Express GR No. 152609 dated June 29, 2005
CIR vs. Burmeister and Wain GR No. 153205 dated Jaunary22, 2007
CIR vs. Acesite GR No. GR No. 147295 dated February 16, 2007
d. Automatic zero-rate vs. Effectively zero-rate
CIR vs. Seagate Technology (Phils) GR No. 153866 February 11, 2005
CIR vs. Toshiba Information Equipment GR No. 150154 dated August 9,
2005
e. Destination principle and cross border doctrine
CIR vs. American Express GR No. 152609 dated June 29, 2005
CIR vs. Toshiba Information Equipment GR No. 150154 dated August 9,
2005
f. Zero Rated Sales vs. Exempt Sales
CIR vs. Cebu Toyo Corp. GR No. 149073 dated February 16, 2005
g. Enumeration of Exempt Transactions (Sec. 109)
Sec. 4.109-1 (B) of RR No. 16-05
h. Exempt Persons vs. Exempt Transactions
CIR vs. Seagate Technology (Phils) GR No. 153866 February 11, 2005
i. Amendments under Rep. Act No. 10378
j. Amendments of Section 106 on Enumerated Export Sales under Rep.
Act No. 10963 (TRAIN) & the Vetoed Provisions
k. Amendments of Section 108 on Enumerated Zero-Rated Services
under Rep. Act No. 10963 (TRAIN) & the Vetoed Provisions
l. Amendments of Section 109 on Enumerated VAT-exempt
Transactions under Rep. Act No. 10963 (TRAIN)

IV. Transitional & Presumptive Input Taxes

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a. Sec. 4.111-1 of RR No. 16-05
Fort Bonifacio Development vs. CIR GR No. 158885 dated April 2, 2009

V. VAT Claim for Refund


a. Compare with Sec. 204 and 229
b. Grounds
c. Periods
Contex vs. CIR GR No. 151135 dated July 2, 2004
Atlas Consolidated Mining vs. CIR GR Nos. 141104 and 148763 June 8,
2007
CIR vs. Mirant Pagbilao Corp. GR No. 172129 dated September 12, 2008
Northern Mini Hydro vs. CIR CTA Case No. 7257 dated May 28, 2009
d. Amendments of Section 112 under Rep. Act No. 10963 (TRAIN) on
Change of Period from 120 to 90 days and No Inaction Provisions and
Penalties for BIR Inaction.

VI. Other Matters


a. Invoicing Requirements
(Sec. 113) [Sec. 4.1113-1 of RR No. 16-05]
b. Information which must be contained (Sec. 113)
c. Consequences of Issuing Erroneous VAT Invoice
(Sec. 113) [ RR No. 4.113-4 of RR No. 16-05]
d. Filing of Monthly and Quarterly VAT Returns and Payment of VAT
(Sec. 114)
e. Amendments of Section 114 under Rep. Act No. 10963 (TRAIN)
on Changes in Filing to Quarterly Filing of VAT Return
f. Withholding VAT (Sec. 114 C) [Sec. 4.114-2 of RR No. 16-05 as
amended by Sec. 22 of RR No. 4-07]
(1) Government payments
(2) Amendments of Section 114 under Rep. Act No. 10963
(TRAIN) on Change from Final Withholding VAT to Creditable
Withholding VAT on Government Payments
(3) Services Rendered by Non-residents
(4) Withholding VAT Returns/Time of Payment
(5) Power of the Commissioner to Suspend Business Operations
(Sec.5) [Sec. 4.115-1 of RR No. 16-05]

F. Other Percentage Taxes

I. Legal Provisions
a. Rep. Act No. 9238
b. Rev. Regs. No. 9-2004
c. Sections 116-128, NIRC

II. 3% Percentage Taxes


a. Tax on Persons Exempt from VAT (Section 116)
b. Amendments of Section 116 under Rep. Act No. 10963 (TRAIN) on
Increase in Threshold to P3M.

III. Distinct Percentage Taxes


a. Common Carriers Tax
(1) Domestic Section 117
(2) International Section118
(3) Amendments under Rep. Act No. 10378

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b. Tax on Franchises Section119
c. Overseas Communication Tax Section120
d. Banks and Non-Bank Financial Intermediaries Performing Quasi-Banking
Functions
(1) Section121
(2) RMC 69-2003
(3) China Banking Corporation vs. CA, CTA and CIR, G.R. No. 146749 and
G.R.147938 dated June 10, 2003
e. Other Non-Bank Financial Intermediaries Section122
f. Tax on Life Insurance Premiums Section123
g. Tax on Agents of Foreign Insurance Companies Section124
h. Amusement Taxes Section125
i. Tax on Winnings Section126
j. Stock Transaction Tax Section 127
(1) Stock Transaction Tax
(2) Amendments of Section 127 under Rep. Act No. 10963 (TRAIN) on
Increase in rate from ½ of 1% to 6/10 of 1%
(3) Tax on IPOs

IV. Return & Payment of Percentage Taxes


a. BIR Form 2551M
b. BIR Form 2551Q for Section120
c. BIR Form 2552 for Section127
d. BIR Form 1600 WP for Section126
e. BIR Form 1600

G. Customs Modernization and Tariff Act (RA 10863)

I. Bureau of Customs
a. Functions of the BOC (Section 202, CMTA)
b. Powers & Functions of the BOC Commissioner (Section 201, CMTA)
c. Functions of Deputy Commissioners (http://customs.gov.ph/offices/)

II. Tariff Commission


a. Functions of the Tariff Commission (Section 1603, CMTA)
b. Chief Officials of the TC (Section 1600, CMTA)

III. Importation
a. Importation (Section 102(z), CMTA)
b. Exportation (Section 102(s), CMTA)
c. Article subject to Duty (Section 204, CMTA)
d. Liability for Duties & Taxes (Section 405, CMTA)
e. Importation Documents
(1) Single Administrative Document
(2) Bill of Lading/Airway Bill
(3) Supplemental Declaration on Valuation
(4) Discharge Port Survey
(5) Tax Credit Certificate
(6) Tax Debit Memo
(7) Certificate of Origin
(8) Other Documents Required by BOC

IV. Types of Importation


a. Freely Importable Goods (Section 116, CMTA)

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b. Regulated Importation (Section 117, CMTA)
c. Prohibited Importation (Section 118, CMTA)
d. Restricted Importation (Section 119, CMTA)

V. Tariff Classification & Advance Ruling


a. Advance Ruling System
b. CAO No. 3-2016 on Establishment of an Advance Ruling System for
Valuation and Rules of Origin)
c. Commission Order No. 2017-01 Procedure on Application for an Advance
Ruling on Tariff Classification related to Importation or Exportation of
Goods
d. Basis of Tariff Classification (ASEAN Harmonized Tariff Nomenclature
(AHTN) 2017 effective 28 July 2017

VI. Tariff Valuation & Advance Ruling


a. Advance Ruling System
b. CO No. 2017-01 on Procedure on Application for an Advance Ruling on
Tariff Classification related to Importation or Exportation of Goods
c. Tariff Valuation Method (Section 701-706, CMTA)
(1) Transaction Value System
(2) Transaction Value of Identical Goods System
(3) Transaction Value of Similar Goods
(4) Deductive Value
(5) Computed Value
(6) Fallback Value
d. Basic Computation of Customs Duties & Taxes
e. Basics of Importation
(1) The nature of the product to be imported to the Philippines
(2) The dutiable value of imported goods as basis of customs duty
(3) The duty rate applicable to the product
(4) The preferential tariff rate under Free Trade Agreement, if the goods
is subject thereto
(5) The taxability of the imported goods under the NIRC.

VII. Special Types of Entry


a. Balikbayan boxes
b. Postal Items
c. Returning Residents/OFWs

VIII. ATRIG
a. Section 131, NIRC
b. Section 172, NIRC
c. Section 268(C), NIRC
d. Revenue Regs. No. 2-2016
e. RMC 48-2002

IX. BOC Powers


a. Release & Limitations
b. BOC Powers
(1) Selectivity System (Section 420, CMTA)
(2) Customs Formalities on Goods Declaration
Documentary Check
On-Intrusive Inspection
Physical Examination

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(3) Requirements for Search, Seizure & Arrest (Section 214, CMTA)
(4) Complement of Exercise of Police Authority (Section 216-224, CMTA)
(5) Customs Jurisdiction & Doctrine of Hot Pursuit (Section 300, CMTA)
(6) Customs Control (Section 302-202, CMTA)
(7) Forfeiture (Section 1115, CMTA)
(8) Seizure or Release of Goods (Section 1116, CMTA)

X. Special Duties & Measures


a. Compulsory Acquisition (Section 709, CMTA)
b. Marking Duty(Section 710, CMTA)
c. Anti-Dumping Duty(Section 711, CMTA)
d. Safeguard Measures(Section 712, CMTA)
e. Countervailing Duty(Section 713, CMTA)
f. Discriminatory Measures(Section 714, CMTA)

H. LOCAL AND REAL PROPERTY TAXATION Republic Act No. 7160, Local
Government Code (LGC) of 1991, as amended Implementing Rules
and Regulations of the LGC

LOCAL TAXATION

I. PRELIMINARY MATTERS

a. Power to Tax of Local Government Units


i. Sec. 5 Art. X, 1987 Constitution (compare with 1935 and 1973
provisions)
ii. Sec. 129, LGC
(3) Pepsi Cola Bottling vs. Municipality of Tanuan 69 SCRA
460
(4) Mactan Cebu International Airport Authority vs. Marcos
– GR No. 120082, Sept. 11, 1996
(5) Manila Electric Company vs. Province of Laguna – GR No.
131359, May 5, 1999
(6) NPC vs. City of Cabanatuan GR No. 149110, April 9, 2003
(7) City Government of Quezon City vs. Bayan
Telecommunications – GR No. 162015, March 6, 2006
(8) Film Development Council of the Philipines vs. Colon
Heritage Realty, GR No. 203754 dated June 16, 2015.

iii. Local Taxing Authority (Sec. 132)


1. Construction of Tax Ordinances (Sec. 5b)
(9) Petron Corp. vs. Mayor Tobias Tiangco – GR No. 158881,
April 16, 2008

iv. Procedure for Approval of and Effectivity of Tax Ordinances (Sec. 187)
(8) Hagonoy Market vs. Mun. Of Hagonoy GR No. 137621, Feb. 6, 2002
v. Publication (Sec. 188)

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b. Other Preliminary Matters
i. Residual Powers of LGUs -Power to Levy Other Taxes, Fees or Charges
(Sec. 186)
ii. Doctrine of Pre-emption or Exclusionary Rule

II. Victorias Milling Co., Inc. vs. Municipality of Victorias – L-21183, September 27, 1968

II. GENERAL PROVISIONS


a. Scope of taxing powers (Sec. 128)
b. Fundamental Principles (Sec. 130)
Film Development Council of the Philipines vs. Colon Heritage Realty,
GR No. 203754 dated June 16, 2015.
c. Definitions (Sec. 131)
d. Common Limitations
i. Income Tax
1. Correlate with Sec. 143 (f)
ii. Documentary Stamp Tax
iii. Transfer Taxes
a) Correlate with Sec. 135
iv. Customs Duties
v. Taxes, Fees and Charges (TFC) on Goods Passing Through the Territorial
Jurisdiction of LGUs
1. Correlate with Sec. 155
(10) Panaligan vs. City of Tacloban – GR No. L-9319, September 27, 1957
(11) Palma Development Corp vs. Municipality of Malangas – GR No.
152492, October 16, 2003
vi. TFC on products sold by marginal farmers of fishermen
b) Definition of Marginalized Fishermen (Sec. 122)
(12) City of Cebu vs. IAC 144 SCRA 710
vii. Taxes on BOI-registered enterprises
III. Excise taxes under the NIRC/TFC on Petroleum Products
(13) Petron Corp. Vs. Mayor Tobias Tiangco – GR No. 158881, April 16,
2008
(14) Province of Bulacan vs. CA – GR No. 126232, November 27, 1998
(15) Batangas City vs. Pilipinas Shell Petroleum Corporation – GR No.
187631 dated July 8, 2015.
ix. Percentage taxes and VAT
Pepsi Cola Bottling vs. Municipality of Tanuan 69 SCRA 460
(16) Matalin Coconut Co, Inc. vs. The Municipal Council of Malabang,
Lanao del Sur, GR No. L-28138 August 13, 1986
(17) Pelizloy Realty Corp., vs. Province of Benguet, GR No. 183137, April
10, 2013
x. Taxes on transportation contractors and common carriers
(18) First Philippine Industrial Corporation vs. CA – GR No. 125948,
December 29, 1998 City of Manila vs. Colet, GR No. 120051,
December 10, 2014
xi. Taxes on premiums
xii. TFC for registration of motor vehicles and issuance of licenses for driving
1. Correlate with Sec. 458 (3)(vi) of the LGV and Art. 99(a)(3)(vi) of
the IRR of the LGC
(19) LTO vs. City of Butuan – GR No. 131512, January 20, 2000
xiii. Taxes, Fees, or Charges on Philippine Products Actually Exported;
a) Correlate with Sec. 143 (c)
IV. TFC on CBBEs under RA No. 6810 and RA 6983

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V. TFC on the National Government, its agencies and instrumentalities and
LGUs
(20) Philippine Fisheries Dev’t Authority vs. CA GR No. 169836, GR No.
July 31, 2007
(21) Mactan Cebu International Airport Authority vs. Marcos – GR No.
120082, Sept. 11, 1996
(22) MIAA vs. CA – GR No. 155650, July 20, 2006
(23) MIAA vs. City of Pasay – GR No. 163072, April 2, 2009
(24) City of DavaoCity vs. RTC – GR No. 127383, August 18, 2005
(To be discussed together with Secs.232 and 234 on Real Property Tax)

III. TAXING AND OTHER REVENUE RASING POWERS OF LGUS


a. Provinces
(a) Local Transfer Tax (Sec. 135)
(b) Business Tax on Printing and Publication (Sec.
136)
(c) Franchise Tax (Sec. 137)
(25) NPC vs. City of Cabanatuan GR No. 149110, April 9, 2003
(26) Quezon City vs. ABS-CBN GR No. 166408. October 6, 2008
(27) City of Iriga vs. Camarines Sur III Electric Cooperative, Inc., GR No.
192945, September 5, 2012
(28) Smart Communications vs. City of Davao – GR No. 155491,
September 16, 2008
(Also read decision on Motion for Reconsideration dated July 21, 2009)
(d) Tax on Sand, Gravel and Quarry Resources
(Sec. 138)
(29) Municipality of San Fernando vs. Sta. Romana L-GR No. 30159, Mar.
31, 1987
(30) Province of Bulacan vs. CA – GR No. 126232, November 27, 1998
v. Professional Tax (Sec. 139)
1. Definition of Professionals (Sec. 238 (f) IRR of the LGC)
2. Professional practices his profession in several places (Sec. 228 (b) IRR
of LGC)
vi. Amusement Tax (Sec. 140) as amended by RA No. 9640 dated May 21,
2009
(31) Pelizloy Realty Corp., vs. Province of Benguet, GR No. 183137, April
10, 2013 (Compare with old case of PBA vs. CA GR No. 119122,
August 8, 2000)
(32) Alta Vista Golf and Country Club vs. The City of Cebu, GR No. 180235
dated January 20, 2016
vii. Annual Fixed Tax on Delivery Trucks / Vans (Sec. 141)

b. Municipalities
i. Business Taxes (Sec. 143)
(33) Ericsson Telecommunication vs. City of Pasig GR No. 176667,
November 22. 2007
(34)Yamane vs. BA Lepanto – GR No 154992, October 25, 2005
(35) City of Manila vs. Coca Cola Bottlers, GR No. 181845, August 4, 2009
(36) Alabang Supermarket Corporation vs. City of Muntinlupa, CTA EB
Case No. 386 February 12, 2009 (read also case decided by the CTA
Division)
(37)Cagayan Electric Power and Light Co., Inc., vs. City of Cagayan de
Oro, GR No. 191761, November 14, 2012.

1. Catch all provision – Sec. 143 (h)


2. Rates of Tax within Metropolitan Manila (Sec. 144)

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3. Retirement of Business (Sec. 145)
(38) Mobil Phils. vs. City Treasurer of Makati GR No. 154092, July 14,
2005
4. Payment of Business Taxes (Sec. 146)
5. Situs of Tax (Sec. 150) – Where to pay business tax?
(39) Shell Co vs. Mun. Of Sipocot – 105 Phil. 1263
(40) Phil. Match vs. City of Cebu – L-30745 – Jan. 1888, 197778
(41) Iloilo bottlers vs. City of Iloilo GR No. 52019 – Aug. 18, 1988
(compare with current LGC provisions and IRR provisions on
rolling stores)

a. With Branch or Sales Outlet


b. No Branch Sales or Outlet
c. With Factories, Project Offices, Plants and Plantations
d. Plantation Located at a place other than the place where
factory is located
e. Two (2) or more factories, project offices, plants or
plantations in different localities
f. See also IRR for rules on rolling stores (See Art. 243 of the
IRR of the LGC)
6. Fees and Charges (Sec. 147)
7. Others (Sec. 148 and Sec. 149)

c. Cities (Sec. 151)

d. Barangay
(i) Tax on retailers (Sec.
152 a)
(ii) Service Fees or
Charges (Sec. 152 b)
(iii) Barangay Clearance
(Sec. 152 c)
(iv) Other Fees (Sec. 152 b)

e. Common Revenue Raising Powers


i. Service Fees and Charges (Sec. 154)
ii. Public Utility Charges (Sec. 155)
iii. Toll Fees or Charges (Sec. 156)

f. Other Matters
i. Public Hearings Necessary? (Art. 324 IRR of the LGC vs. Sec. 187)
(42) Figuerres vs. CA, GR No. 119172, March 25, 1999
ii. Authority to Adjust Tax Rates (Sec. 191)
(43) Alabang Supermarket Corporation vs. City of Muntinlupa, CTA EB
Case No. 386 February 12, 2009 (read also case decided by the CTA
Division)
(44) Mindanao Shopping Destination Corporation vs. Duterte, GR No.
211093 dated June 6, 2017
iii. Authority to Grant Tax Exemptions (Sec. 192)
iv. Withdrawal of Tax Exemption Privileges (Sec. 193)
(45) PLDT vs. City of Davao GR No. 143867, August 22, 2001
(46) NPC vs. City of Cabanatuan GR No. 149110, April 9, 2003
v. Community Tax
1. Who may impose(Sec. 156)
2. Individuals Liable to pay (Sec. 157)

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3. Juridical Persons Liable to Community Tax (Sec. 158)
4. Exemptions (Sec. 159)
5. Place of Payment (Sec. 160)
6. Time of Payment (Sec. 161)
7. Community Tax Certificate (Sec. 162)
8. Presentation of CTC on certain occasions (Sec. 163)

IV. COLLECTION OF TAXES AND REMEDIES


a. Collection of Taxes
(e) Tax Period and Manner of Payment (Sec. 165)
(f) Accrual of Tax (Sec. 166)
(g) Time of Payment (Sec. 167)
(h) Surcharges and Penalties (Sec. 168)
(47) NPC vs. City of Cabanatuan, GR No. 177332 dated October 1, 2014
v. Interests on Other Unpaid Revenues (Sec. 169)
vi. Collection of Local Revenues by Treasurer (Sec. 170)
vii. Examination of Books of Accounts and Pertinent Records (Sec. 171)

b. Remedies of the Government


(i) Local Government’s
Lien (Sec. 173)
(ii) Civil Remedies (Sec.
174)
(iii) Distraint (Sec. 175)
(iv) Levy of Real Property
(Sec. 176)
(v) Advertisement and
Sale (Sec. 178)
(vi) Redemption of
Property Sold (Sec. 179)
(vii) Purchase of Property
by LGU for want of bidder (Sec. 181)
(viii) Resale of Real Estate
Tax for TFC
(ix) Judicial Action (Sec.
183)
(x) Further Distraint and
Levy (Sec. 184)
(xi) Personal Property
Exempt from Distraint or Levy (Sec. 185)

c. Taxpayer’s Remedies
Question Constitutionality of Ordinance (Sec. 187)
(48) Drilon vs. Lim GR No. 111249, August 4, 1994
(49) Cagayan Electric Power and Light Co., Inc., vs. City of Cagayan de
Oro, GR No. 191761, November 14, 2012.
(50) Smart Communications, Inc. vs. Municipality of Malvar, GR No.
204429, GR No. 204429 dated February 18, 2014.
Publication (Sec. 188)
(51) Coca-Cola Bottlers vs. City of Manila - GR No. 156252, June 27, 2006
Periods of Assessment and Collection (Sec. 194)
Protest of Assessment (Sec. 195)
(52) San Juan vs. Castro – GR No. 174617, December 27, 2007
(53) PLDT vs. City of Balanga, CTA EB Case No. 413, June 3, 2009

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(54)China Banking vs. City Treasurer of Manila, GR No. 204117 dated
July 1, 2015 – (jurisdiction issue)
Appeal to the CTA
Claim for Refund (Sec. 196)
(55)Alabang Supermarket Corporation vs. City of Muntinlupa, CTA EB
Case No. 386 February 12, 2009 (read also case decided by the CTA
Division)
(56)Mindanao Shopping Destination Corp. Vs. Davao City, CTA AC No. 6,
May 31, 2011
vii. Is injunction available?
(57)Angeles City vs. Angeles Electric Corporation, GR No. 166134 dated
June 29, 2010.

REAL PROPERTY TAXATION

I. PRELIMINARY MATTERS
a. Definition of Real Property Tax
(1) Villanueva vs. City of Iloilo, L-26521, December 28, 1968
b. Who should pay the real property tax?
(2) Baguio vs. Busuego, GR No. 29772, September 18, 1980
(3) NPC vs. Province of Quezon, GR No. 171586, July 15, 2009
(4)NPC vs. Province of Quezon, GR No. 171586, January 25, 2010
(Resolution)
(5)GSIS vs. City Treasurer and Assessor of Manila, GR No. 186242,
December 23, 2009
c. Fundamental Principles (Sec. 198)
d. Important Definitions (Sec. 199)
i. Real Property for RPT Purposes (415 NCC)
ii. Machineries
(6) Mindanao Bus vs. City Assessor and Treasurer L-17870, Sept. 29,
1962
(7) Caltex Philippines, Inc. vs. CBAA – GR No. 50466, May 31, 1982
(8) Manila Electric Co. vs. CBAA L-47943, May 31, 1982
(9) Manila Electric Company vs. The City of Assessor and City Treasurer
of Lucena City, GR No. 166102 dated August 5, 2015.
(10) Provincial Assessor of Agusan del Sur vs. Filipinas Palm Oil,
GR No. 183416 dated October 5, 2016.
(11) Capitol Wireless, Inc. vs. Provincial Treasurer of Batangas,
GR No. 180110 dated May 30, 2016.

iii. Actual Use


(12) Patalinghug vs. CA, GR No. 104786, January 27, 1994
iv. Appraisal
v. Assessment
vi. Assessed Value

e. Appraisal of Real Property (Sec. 201)


(13) Sesbreno v. CBAA, 270 SCRA 263
f. Declaration of Real Property
i. By Owner or Administrator (Sec. 202)
ii. In case improvements are made (Sec. 203)
iii. By Assessor (Sec. 204)
iv. Notification of Transfer of Real Property Ownership (Sec. 208)

g. Assessment of Real Property

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i. Preparation of Schedule of Fair Market Values (Sec. 212)
(14) Lopez vs. City of Manila, GR No. 127139 February 19, 1999
ii. Classes of Real Property for Assessment (Sec. 215)
iii. Special Classes of Real Property (Sec. 216)
(15) City Assessor of CebuCity vs. Association de Benevola de Cebu – GR
No. 152904, June 8, 2007
iv. Actual Use as Basis for Assessment (Sec. 217)
(16) Testate Estate of Concordia Lim vs. City of Manila – GR No. 90639,
February 21, 1990)
(17) Patalinghug vs. CA, GR No. 104786, January 27, 1994 LRTA vs. CBAA
– GR No. 127316, October 12, 2000
(18) Allied Banking Corporation vs. Quezon City Government – GR No.
154126, October 11, 2005
v. Assessment Levels (Sec. 218)
vi. General Revision of Assessments and Property Classification (Sec. 219)
vii. Valuation of Real Property (Sec. 220)
(19) Allied Bank vs. Quezon City Government – GR No. 154126, October
11, 2005
viii. Date of Effectivity of Assessment or Reassessment (Sec. 221)
ix. Assessment of Property Subject to Back Taxes (Sec. 222)
Sesbreno v. CBAA, 270 SCRA 263
x. Notification of New or Revised Assessment (Sec. 223)
(20) Manila Electric Company vs. The City of Assessor and City Treasurer
of Lucena City, GR No. 166102 dated August 5, 2015.
xi. Appraisal and Assessment of Machinery (Sec. 224)
xii. Depreciation Allowance for Machinery (Sec. 225)

h. Condonation of RPT
i. Condonation and Reduction of RPT (Sec. 276)
ii. Condonation or Reduction of RPT by President (Sec. 277)

II. IMPOSITION OF REAL PROPERTY TAX


a. Power to Levy Real Property Tax (Sec. 232)
b. Rates of Levy (Sec. 233)
(21) Allied Bank vs. Quezon City Government – GR No. 154126, October
11, 2005
c. Exemptions from RPT (Sec. 234)
i. Proof of Exemption from RPT (Sec. 206)
(22) Provincial Assessor of Marinduque vs. CA – GR No. 170532, April 4,
2009
ii. Constitutional Provisions on RPT Exemption
1. Sec. 28, Art. VI
(23) Lung Center of the Philippines vs. QC – 433 SCRA 119
2. Sec. 4(3), Art. XIV
(24) Fels Energy, Inc. vs. Province of Batangas GR No. 168557, February
16, 2007
(25) Philippine Fisheries Dev’t Authority vs. CA GR No. 169836, GR No.
July 31, 2007
(26) Mactan Cebu International Airport Authority vs. Marcos – GR No.
120082, Sept. 11, 1996
(27) MIAA vs. CA – GR No. 155650, July 20, 2006
(28) Mactan-Cebu International Airport Authority vs. City of Lapu-Lapu –
GR No. 181756 dated June 15, 2015
(29) Provincial Assessor of Marinduque vs. CA – GR No. 170532, April 4,
2009
(30) NPC vs. Province of Quezon, GR No. 171586, July 15, 2009

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(31) NPC vs. Province of Quezon, GR No. 171586, January 25, 2010
(Resolution)
(32) GSIS vs. City Treasurer and Assessor of Manila, GR No. 186242
December 23, 2009
(33) City of Pasig vs. Republic, GR No. 185023 dated August 24, 2011
(34) Republic vs. City of Paranaque, GR No. 191109 dated July 28, 2012
(35) Angeles University Foundation vs. City of Angeles, GR No. 189999
June 27, 2012
(36) City of Lapu-Lapu vs. PEZA, GR No. 184203 dated November 26, 2014
(37) Provincial Assessor of Agusan del Sur vs. Filipinas Palm Oil, GR No.
183416 dated October 5, 2016.

d. Additional Levy for SEF (Sec. 235)


e. RPT on Idle Lands (Sec. 236)
i. Coverage of Idle Lands (Sec. 237)
ii. Idle Lands Exempt from Tax (Sec. 238)
f. Special Levies (Sec. 240)
i. Ordinance Imposing Special Levy (Sec. 241)
ii. Publication and Public Hearing (Sec. 242)
iii. Fixing Amount of Special Levy (Sec. 243)
iv. Taxpayers Remedies (Sec. 244)
v. Accrual of Special Levy (Sec. 245)

III. COMPUTATION OF REAL PROPERTY TAX


a. Date of Accrual (Sec. 246)
b. Notice of Time of Collection (Sec. 249)
c. Payment of RPT in Instalments (Sec. 250)
d. Tax Discount for Advanced Prompt Payment (Sec. 251)

IV. REMEDIES
a. Local Government Unit’s Remedies
i. Date of Accrual of Tax (Sec. 246)
ii. LGU’s Lien (Sec. 257)
iii. Interest on Unpaid RPT (Sec. 255)
iv. Period to Collect (Sec. 270)
1. Suspension of Period to Collect
v. Levy on Real Property (Sec. 258)
1. Advertisement and Sale (Sec. 260)
(38) Puzon vs. Abelera 169 SCRA 789
(39) Spouses Tan vs. Bantequi GR No. 154027 October 24, 2005
vi. Redemption of Property Sold (Sec. 261)
vii. Purchase of Property by the Local Government Units for Want of Bidder
(Sec. 263)
viii. Court Action for Collection (Sec. 266)

b. `Taxpayer’s Remedies
i. Action Assailing Validity of Tax Sale (Sec. 267)
ii. Action Involving Ownership (Sec. 268)
iii. Payment under Protest (Sec. 252)
(40) Manila Electric Company vs. The City of Assessor and City Treasurer
of Lucena City, GR No. 166102 dated August 5, 2015.
(41) Ramie Textile vs. Mathay - 89 SCRA 586 Ty vs. Trampe – GR No.
117577, December 1, 1995
(42) Olivarez vs. Marquez - 438 SCRA 679
(43) NPC vs. Province of Quezon, GR No. 171586, July 15, 2009

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(44) NPC vs. Province of Quezon, GR No. 171586, January 25, 2010
(Resolution)
(45) Camp John Hay Development Corp. vs. CBAA, GR No. 169234, October
2, 2013. (include concurring opinion of Justice Carpio)
(46) NPC vs. Municipal Government of Navotas, GR No. 192300 dated
November 24, 2014
(47) City of Lapu-Lapu vs. PEZA, GR No. 184203 dated November 26, 2014
(48) CE Casecnan Water and Energy Company, Inc. vs. The Province of
Nueva Ecija, GR No. 196278 dated June 17, 2015.
(49) NPC vs. Provincial Treasurer of Benguet, GR No. 209303 dated
November 14, 2016.
iv. Refunds (Sec. 253)
(50) Allied Banking vs. Quezon City Government – GR No. 154126,
September 15, 2006 – Motion for Clarification of Decision
v. Assessment Appeals
1. Appeal with the LBAA (Sec. 226)
(51) City Government of Quezon City vs. Bayan Telecommunications – GR
No. 162015, March 6, 2006
(52) Systems Plus Computer College of Caloocan vs. Local Government of
Caloocan, GR No. 146382. August 7, 2003
(53) Fels Energy, Inc. vs. Province of Batangas GR No. 168557, February
16, 2007
2. Action by the LBAA (Sec. 229)
3. Appeal to the CBAA (Sec. 229)
4. Appeal to the CTA En Banc
5. Effect of Appeal on Payment of RPT (Sec. 231)

I. COURT OF TAX APPEALS


Republic Act 1125 The Act that Created the Court of Tax Appeals (CTA), as
amended, and the Revised Rules of the Court of Tax Appeals

I. Jurisdiction of the Court of Tax Appeals


1. Exclusive appellate jurisdiction over civil tax cases
a. Cases within the jurisdiction of the Court en banc
b. Cases within the jurisdiction of the Court in divisions
2. Criminal cases
a. Exclusive original jurisdiction
b. Exclusive appellate jurisdiction in criminal cases

II. Judicial Procedures


1. Judicial action for collection of taxes
a. Internal revenue taxes
b. Local taxes
1) Prescriptive period
2. Civil cases
a. Who may appeal, mode of appeal, effect of appeal
1) Suspension of collection of tax
a) Injunction not available to restrain collection
2) Taking of evidence
3) Motion for reconsideration or New trial
b. Appeal to the CTA, en banc,
a. Petition for review on certiorari to the Supreme Court

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3. Criminal cases
a. Institution and prosecution of criminal actions
1) Institution on civil action in criminal action
b. Appeal and period to appeal
1) Solicitor General as counsel for the People and government
officials sued in their official capacity
c. Petition for review on certiorari to the Supreme Court

III. Taxpayer’s suit impugning the validity of tax measures or acts of taxing
authorities
1. Taxpayer’s suit, defined
2. Distinguished from citizen’s suit
3. Requisites for challenging the constitutionality of a tax measure or act of
taxing authority
a. Concept of locus standi as applied in taxation
b. Doctrine of transcendental importance
c. Ripeness for judicial determination

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